As a business owner, you may be considering expanding your operations to include international trade. There are many benefits to selling products overseas, including reaching new markets and customers, increased profits, and the potential to establish your business as a global player.
Before you begin internationalizing your business, it’s essential to research and understand the potential risks and rewards. Below are the benefits of international trade and some tips on getting started.
Understanding international trade
International trade is the process of exchanging commodities and services with different countries. Import/export or direct investment (setting up a manufacturing plant in another country) is a way of making international trade. International trade has been overgrowing in recent years due to advances in technology, transportation, and the rise of global markets.
International Trade in the 21st Century
In 2000, global exports were $9 trillion U.S. dollars. In 2014, it more than doubled to $18.4 trillion. Some factors that drive this growth are:
- Technological advances: The internet and other technologies have made it easier for businesses to connect with customers and suppliers worldwide.
- Improved transportation: International shipping and air travel have become faster and more reliable, making it easier to move goods between countries.
- The rise of global markets: As the world becomes more interconnected, businesses are increasingly looking to sell their products in multiple countries.
Top Seven Benefits of International Trade
- More Customers & Sales: International trade allows businesses to reach new markets and customers. It helps increase sales and profits.
- Lower competition in new markets & Better risk management: When businesses enter new markets, they often face less competition than in their domestic market. This can provide a competitive advantage and help reduce business risks in unfamiliar territory.
- Diversification of products & Longer Product Lifespan: International trade can help businesses diversify their product range, leading to increased sales and a longer product lifespan.
- Benefiting from different currency exchanges: When businesses buy and sell in foreign currencies, they can benefit from changes in the exchange rate, leading to increased profits.
- Brand reputation and increased equity: Global trade can help businesses build a strong reputation and increase equity, resulting in easier to raise capital and expand operations.
- Access to financing to help the business grow: International trade can provide businesses with access to funding, which can help them to grow and expand their operations.
- Opportunity to become the top product: When businesses enter new markets, they have the opportunity to become the ultimate product or service in that market, resulting in increased sales and profits.
How to get started with international trade
If you want to expand your business into global markets, there are a few things you should do first:
- Research potential markets: Not all markets are equally open to international trade. It’s important to research potential markets and understand your product or service regulations.
- Find a reliable partner: When expanding into new markets, it’s essential to find a reliable partner who helps you with logistics, shipping, and other aspects of the business.
- Understand the risks: Global markets can be volatile, and chances are always associated with doing business in unfamiliar territory. It’s important to understand these risks and plan to mitigate them.
These are just a few tips to get you started with international trade. Several resources are available that help you expand your business into new markets.
Global trade can provide businesses many benefits, including access to new markets, customers, and financing. Understanding the risks associated while doing business in unfamiliar territory is essential, and finding a reliable partner to help you navigate the process. With careful planning and execution, your business can reap the rewards of international trade.
Working with American Trading International can help international trade.
As a business, you want to take advantage of every opportunity that comes your way. American Trading International (ATI) has over 25 years of experience helping companies expand into new markets. ATI helps you in every process, from market research to shipping and logistics. Our team of experts will help you navigate the complexities of global trade and take advantage of every opportunity.
- Reasons why
ATI offers a full range of services to support your international expansion, including:
- Market research: We can help you identify potential markets and understand the regulations for your product or service.
- Shipping and logistics: We have a team of experts who can help you with shipping and logistics, and we have a network of partners to support your expansion.
- Financing: We can help you access financing to support your expansion into new markets.
- Market entry: We can help you navigate the complexities of entering new markets and take advantage of every opportunity.
Global trade can provide businesses with many benefits, including access to new markets, customers, and financing. American Trading International has over 25 years of experience helping companies expand into new markets. Our team of experts helps you with every process step, from market research to shipping and logistics.
American Trading International, Inc. (ATI) is a trading company that gives local and global organizations a valuable chance to import commodity items to new and existing business sectors. At ATI, we can help with importing and exporting, cultural differences, and other challenges in doing business in other countries.
For information on American Trading International (ATI), visit our website. Interested in working together? Call us at +1 (310) 445-2000.